2. Shared Wealth Is Not Always Good
To some wealthy countries like Germany and the UK, being EU members may become a burden for them since they always need to help some poor countries like Greece through spending money on bailouts which don’t bring them benefits. 3. Leaving as a Problem Once a country decides to join the EU it is extremely difficult for them to leave it. This makes many people uneasy from joining because, if it negatively affects their country, there is little that they can do about it. As there are a lot of benefits for small countries to join EU, the EU has to be very strict on who can join, leading to a discrimination among potential members. 5. Takes Power from Governments The EU has the power of ordering other countries to take action and its power is much more than the power of the local government of each EU country. Therefore, a policy may be able to control the economy of the country. According to the UK government, they are trying to improve the UK economy, move closer to a budget surplus and clear the national debt by 2019-20. However, leaving the EU means that there will be fewer exports as there is no more free trade, and there will be many documents needed for trade applications. Thus, it is time- consuming and a waste of money which would lead to a more serious current account deficit. Furthermore, leaving the EU means the UK may need to find a new trading partner to cover the money it will lose and there are only few countries that can cover the loss of leaving the 3 rd highest GDP zone. Most of these countries have many stable trading partners meaning there is a very small chance for the UK to find a new, wealthy, trading partner. Moreover, when exports decrease, the domestic consumption will decrease because disposable incomes will fall and because people will have less confidence in the economy. This will trigger the deflationary spiral, and a negative accelerator effect. When consumption decreases, investment will also decrease as there is no longer any reason to invest since there is less profit. Instead, investors will put money in to countries with more economic activity, like France. As a result, the UK may enter recession again. In addition, it will be complicated if the UK wants to trade with EU countries but not follow their laws as it will make the process so difficult for firms to adapt. Also, if the economy of the UK has a sharp fall suddenly, the EU is the only economic body that can save it in a short period of time. In regard to employment, the unemployment of the UK is around 5% but, once it has left the EU, workers that work in other EU countries will need an application to gain permission to work in that place. And the application may not be permitted, as those countries are more willing to give their locals a job than UK residents. Thus, the unemployment rate of the UK will increase. Moreover, there are many workers that have no skills or no advanced skills and so may not be suitable for any of the vacant jobs in the UK. This could also lead to a higher unemployment rate. Furthermore, there are 3 million jobs that are related to trading in UK. Consequently, leaving the EU means that they may need to face being unemployed and that would mean that there will be fewer tax payers. So, tax revenue will decrease and the budget will be in a more serious deficit because welfare benefits will increase due 4. Discriminates Against Potential Members And, recently, the UK proposed an EU referendum to ask whether UK should leave the EU or stay in the EU . In my opinion, staying in the EU is a better choice for the UK. My reasons include certain aspects of the economy, security and national status of UK.
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